The tax avoidance question is ‘critical’, particularly in the current economic situation, but the subject should be kept in perspective, a Treasury minister said yesterday after a Labour peer warned that a ‘socially useless tax avoidance industry’ could harm the performance of the economy.
‘George Osborne is considering tax cuts for low and middle earners in his March Budget in an attempt to kick-start growth after figures showed that the economy is contracting.
‘Barack Obama laid down the battle lines for the presidential election Tuesday night as he promised a “fairer” tax regime on the day Mitt Romney, the leading Republican contender, revealed that he paid federal income taxes at an effective rate of just 13.9% in 2010.
Governments forced to re-think tax and benefit systems should take the opportunity to address inequality and growth issues simultaneously, the OECD said.
Businesses and governments are in ‘a volatile era’ in which stable and predictable tax frameworks are ‘critical’ in maintaining the right conditions for investment, said Simon Henry, Chief Financial Officer at Royal Dutch Shell.
Chris Sanger looks at the impact of increased consultation.
Helen Lethaby provides your monthly update.
Oil and gas industry representatives discussed ‘a range of fiscal issues’ with ministers yesterday at the first meeting of the Fiscal Forum, established last September ‘to encourage constructive discussion’ on tax issues.